Can you arrange to skip one mortage payment per year?

Question

We've getting married next month and wanted to skip one months payment to have a bit of extra cash for honeymoon, the bank is closed this afternoon so i can't call to enquire, we'll have our mortgage 11 months then. We're with Natwest. Any ideas???

Answer 1

Check your mortgage papers.  Sometimes as little as 30 days late can put you in default and possibly raise your interest rate.  But discuss it with your lender, you may have other options.

When I refi'd my home, my lender gave me a free HELOC (home equity line of credit) to borrow back paid principal if necessary.  The HELOC is a variable rate (prime minus 0.5%) instead of the fixed rate of my loan, and it had been up to 7.5% before interest rates dropped again, but is currently 4.5%.

Answer 2

You probably can't "arrange" it now.  The time to do that was when you got the loan.  If it doesn't have that option in it already, you would have to get a change in terms.

Your mortgage is probably not with Natwest.  It was probably sold to an investor and Natwest has a servicing contract.  In this case, the investor expects his income each month and the bank, as servicer doesn't have the authority to change the terms.

Answer 3

It would be easier to borrow from your bank and use the home equity as collateral.

Answer 4

hi there ,you should be able to ask for a mortgage holiday ,they are uaualy for about six months i think ,you need to make an appointment with your bank and have a talk i am sure hey will be able to help ,good look  and enjoy your honymoon

Answer 5

If you read your mortgage papers (the realty note) you will see that you can never skip a payment.  If you do, the next payment you send will be credited first to the late charge on last month's missed payment.  Which means, of course, that your payment is not adequate to cover your current month.  So your payment will be a 2nd month that you have not made a "full" payment.  That is grounds to begin foreclosure.  At any point, the lender is allowed (it doesnt seem fair) to add $1,000 in attorney's fees since they will have to notify their attorney that you are "behind".  Please don't skip your payment "because we are getting married". Could you tell your landlord that you are going to skip your rent this month because you are getting married?  The sheriff would be at your door in 30 days with a locksmith to change the locks.

I know this isn't the answer you were hoping to hear.